American Airlines, which has merged with US Airways, has gotten the final clearance to take off from bankruptcy protection according to the New York Times in a September 12, 2013 news article
The company has been under bankruptcy protection for about two years. The bankruptcy court in Manhattan has given American approval to finish the bankruptcy. The airline cut costs, including labor costs, during these two years, while still operating. This is known as â€œreorganization,â€ When a company files for a Chapter 11 bankruptcy, they must restructure their company so that it can stay afloat financially.
In order to stay profitable and successful, the airline merged with US Airways. Company officials say creditors and labor unions supported this move. The officials say that this move was necessary to compete with other large airlines, such as Delta Air Lines and United Airlines, so that the company would not fall back into bankruptcy again.
The Justice Department has challenged this merger, in a surprise action, citing anti-trust and competition concerns. It is hoped that the airline will be able to work out these issues, as the bankruptcy judgment is still contingent on a positive settlement with the Justice Department.
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